Motel Add-Backs: Why Buyers Don’t Believe You (Until You Prove It)

​Motel Add-Backs Explained: How to Present Earnings Buyers Will Underwrite | SIRE

Motel Add-backs are where deals go to die. Buyers don’t hate add-backs—they hate unprovable add-backs.
Freehold motel: separate property reality from trading realityBuyers want:

• normalised wages (including owner role)
  
• real maintenance (not “deferred reality”)
  
• defensible occupancy and ADR assumptions
  

Leasehold motel: show EBITDA after rent with lease mechanics clearLeasehold buyers want:

• earnings after rent and required outgoings
  
• clarity on rent review timing and methodology
  
• proof that profit survives lease terms
  

Institutional presentation standard

• One normalised P&L with assumptions stated in plain English
  
• Reconciliation to bank statements / POS where possible
  
• Owner labour line item at market wage
  
• No grey categories, no “trust me”
  

The cleaner your evidence, the less room buyers have to retrade.
SIRE appraisals flag the add-backs buyers will discount—and how to package earnings to protect price.
Request Appraisal (Confidential) Call 0404 331 310

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